Greg Gerber posted on September 07, 2008 00:23
DAVIS, Calif. -- On Chiles Road in Davis earlier this week, Vacaville resident Sally Kemp was hitting RV lots looking for a bargain-priced recreational vehicle. For her, an RV purchase is "an investment in the future."
Kemp has had a lot of company recently. Offering steep discounts, RV dealers have reported a spike in consumers looking to get a vehicle for a fraction of the original retail price.
The tough times have hit the RV industry hard. Three area dealers – La Mesa RV Center in Davis, Dan Gamel's Rocklin RV Center and Nu Star RV Center near Rancho Cordova – recently announced they're closing up shop. Yet the RV industry seems to be proving that you can sell anything if you discount it enough.
Area dealers are selling RVs big and small at up to 40 percent below manufacturers' suggested retail prices. And instead of being deserted, local lots are drawing consumer traffic.
"RVs aren't daily transportation like big SUVs," said Sacramentan Dave Logan as he strolled Gamel's Rocklin RV Center lot, perusing RVs for prices 30 percent to 40 percent below previously listed values. "RVs are just that – recreational. People will always want to camp and travel."
Henry Myers of Sacramento isn't waiting for the economy to improve. He was shopping the RV lots in Davis – including La Mesa RV Center – looking for a large trailer.
"I know you hear this everywhere, but it's true: Now is the best time to buy," Myers said. "If you have the money to buy a house, prices now are lower than they have been in years. The same thing is going on now with (RVs)."
Industry officials concede that RV dealers nationwide are under pressure to move inventory, but they said that is nothing new.
Ralph Graves, the 33-year-old general manager of Dan Gamel's Rocklin RV Center, believes the price cuts make even that argument out of date.
"What's happened in the market is that dealers have become more aggressive and proactive reacting to market demand," Graves said. "It's allowed people who once thought they couldn't afford an RV to buy one."
Out on the lots of area dealers, signs tout major savings. RVs with suggested retail prices in the $70,000-to-$80,000 range are now going for $40,000 to $50,000.
The discounts appear to be working.
Dan Gamel said he has moved $40 million in vehicles since March. Things have been going so well that he said he's not sure when he might shut down his California stores. He even hinted they might continue to operate in some fashion for an extended time. He declined to elaborate.
Bill Lawrence, owner of RV Travel World of Sacramento and a 30-year RV industry veteran, said the industry is going through one of its periodic adjustments. It will ultimately recover to be as strong as ever, he said.
Graves believes it's only a matter of time before the numbers head the other way. He cited consumers' seemingly relentless desire to travel and be outdoors, plus a massive group of baby boomers planning to enjoy retirement.
"It sounds old, but it's true: We don't sell RVs. We sell lifestyles," he said.
SOURCE: Sacramento Bee
Nu Star RV Center at 2500 Mine Shaft Lane - along Folsom Boulevard, just north of the Rancho Cordova boundary and west of the Hazel Avenue exit off Highway 50 - has extended an inventory-liquidation sale in advance of going out of business.
Nu Star sold discounted recreational vehicles from Aug. 22 through Labor Day, when it was supposed to close shop. The company said this week that it will extend liquidation three days, selling RVs Friday through Sunday.
Discounted recreational vehicles include motor homes and travel trailers. Nu Star has specialized in RVs produced by Gulf Stream Coach of Nappanee, Ind.
Nu Star's announcement of imminent closure is the third made by an area RV dealership in the past few weeks.
SOURCE: Sacramento Bee